For lakhs of Indian students, the American dream has always rested on one quiet bridge: Optional Practical Training, the work permit that lets foreign graduates earn in the United States after finishing their degree. This week, Washington proposed turning that bridge into a toll road, with a staggering $70,000 price tag attached.
The proposal, released by the US Department of Homeland Security (DHS) on October 7, has sent shockwaves through study-abroad circles in India, which happens to be the largest source of international students in America. If you or your child are planning a US education, here is what you need to know.
What exactly has been proposed
Under the proposed rule, educational institutions certified under the Student and Exchange Visitor Program (SEVP) would have to pay $70,000 for every F-1 student’s first participation in OPT. For any subsequent OPT recommendation, including STEM OPT extensions, the fee would be $30,000.
To put that in perspective, students and institutions currently pay around $500 in OPT-related fees. The proposal represents a jump of nearly 140 times.
DHS said the move is meant to “combat fraud and abuse, strengthen the integrity of the immigration system, and protect US workers”. A DHS spokesperson added that the programme was never meant to be a back door into the American workforce and that foreign students should now justify their worth to employers.
The notice was published in the Federal Register on October 8, opening a 30-day window for public comments. DHS will have to review the feedback and issue a final rule before the fees can take effect.
Why this hits Indian students hardest
India was the largest source of international students in the US in the 2024-25 academic year, with more than 3.63 lakh Indian students enrolled in American institutions. DHS data cited in the proposal shows that 1,94,554 F-1 students participated in OPT in 2024, with another 95,384 in STEM OPT.
The timing could not be worse. Study-abroad platforms are already reporting a sharp slowdown in demand for US education:
- Career Mosaic is seeing a 40% decline in Indian student applications to the US compared to last year.
- MSM Unify and upGrad report roughly 20% and 19% declines in applications and queries.
- Postgraduate applicants are the most affected. Many are deferring their plans and “opting to work in India until things turn around”, according to Career Mosaic founder Manisha Zaveri.
- Others are redirecting their applications to Germany, Australia, Ireland and other European countries.
As Adarsh Khandelwal, cofounder of Collegify, put it: undergraduate families generally have a longer investment horizon, while postgraduate students are more sensitive to employment prospects because they have a shorter period to recover their educational investment.
Who actually pays the $70,000?
Technically, the proposed fee would be charged to the university, not the student. But few believe institutions will simply absorb a $70,000 hit per student. The cost is likely to be passed on to students through higher fees, or universities may become far more selective about recommending students for OPT.
Critics say the proposal rests on shaky ground. Policy analyst Daniel Di Martino called DHS’s assumption that demand would drop by 44% “arbitrary and incredibly optimistic”, arguing the real drop could be near 99%. “This is bad for innovation, and will cost taxpayers,” he wrote.
What happens next
The proposal is not yet law. The 30-day public comment period is the first step, and universities, employers and student groups are expected to push back hard. Only after DHS reviews the comments and publishes a final rule could the fees take effect, and legal challenges are almost certain.
For students already in the US or applying this cycle, there is no immediate change. But the direction of travel is unmistakable. The OPT proposal comes alongside tighter visa scrutiny, a fraud probe into nine US universities over J-1 visas, and higher H-1B fees.
A recent Common App report estimated that international students contributed $41.77 billion to local US economies in 2025-26, a figure projected to fall to $38.37 billion in 2026-27. The OPT fee proposal, if implemented, could accelerate that decline.
Frequently asked questions
What is OPT?
Optional Practical Training allows eligible F-1 international students to work in the US for up to 12 months in jobs related to their field of study. Graduates in science, technology, engineering and mathematics (STEM) fields can seek a further 24-month extension.
Will students pay the $70,000 directly?
The proposal charges the fee to the SEVP-certified institution. However, experts expect universities to pass the cost on to students or limit OPT recommendations.
Is the rule already in force?
No. It is a proposed rule. After the 30-day comment period, DHS must review feedback and issue a final rule before the fees can become effective.
Should current applicants cancel their US plans?
Not yet, but caution is warranted. Many postgraduate aspirants are deferring applications or exploring Germany, Australia, Ireland and other European destinations until the policy picture clears.
What can Indian students do right now?
Watch the Federal Register process, speak to a qualified education counsellor, compare destinations on total cost and post-study work rights, and avoid locking in non-refundable deposits until the final rule is clear.
For now, the only certainty is uncertainty. The $70,000 question hanging over Indian students is whether the American work permit that built a generation of careers will remain within reach at all.
